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How are MCA rates and fees calculated?

WeLendIt Support avatar
Written by WeLendIt Support
Updated over 6 months ago

MCAs use a factor rate instead of a traditional interest rate. This factor rate, along with the total amount borrowed, determines your overall repayment.

  • Factor rates typically range from 1.1 to 1.5.

  • To calculate total payback: multiply your funding amount by the factor rate.

  • Example: $10,000 advance x 1.3 factor rate = $13,000 total payback.

  • Payments are taken as a percentage of daily or weekly sales, not fixed amounts.

We’re transparent about all rates and fees upfront, so you know exactly what you’re paying and how it’s structured.

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